Medium in 2015: A New Form of Networked Publishing SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Medium in 2015: A New Form of Networked Publishing
The Medium Corporation seeks to change how people author, consume and engage with content on the Internet. Founded by Ev Williams, co-founder of Blogger and Twitter, the company developed a digital publishing platform and set of social network tools that allow people to spend substantive time with weighty issues facing society, business and politics. Fighting the trend of quick engagement with short-form content on the Internet, Medium wrestles with how to deliver an experience that advances important topics with ease, flexibility and meaning, while working to build a large and successful company. The challenges of building a successful digital media company, balancing tool development with content curation, and organizing a firm in the 21st century are at the core topics facing the firm's leadership team.
Authors :: Robert E. Siegel, Robert A. Burgelman, Tim Hsia
Swot Analysis of "Medium in 2015: A New Form of Networked Publishing" written by Robert E. Siegel, Robert A. Burgelman, Tim Hsia includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Medium Content facing as an external strategic factors. Some of the topics covered in Medium in 2015: A New Form of Networked Publishing case study are - Strategic Management Strategies, Social platforms and Technology & Operations.
Some of the macro environment factors that can be used to understand the Medium in 2015: A New Form of Networked Publishing casestudy better are - – there is increasing trade war between United States & China, there is backlash against globalization, technology disruption, talent flight as more people leaving formal jobs, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models,
competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Medium in 2015: A New Form of Networked Publishing
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Medium in 2015: A New Form of Networked Publishing case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Medium Content, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Medium Content operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Medium in 2015: A New Form of Networked Publishing can be done for the following purposes –
1. Strategic planning using facts provided in Medium in 2015: A New Form of Networked Publishing case study
2. Improving business portfolio management of Medium Content
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Medium Content
Strengths Medium in 2015: A New Form of Networked Publishing | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Medium Content in Medium in 2015: A New Form of Networked Publishing Harvard Business Review case study are -
Innovation driven organization
– Medium Content is one of the most innovative firm in sector. Manager in Medium in 2015: A New Form of Networked Publishing Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Medium Content has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Medium in 2015: A New Form of Networked Publishing HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Medium Content is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Medium Content is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Medium in 2015: A New Form of Networked Publishing Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Organizational Resilience of Medium Content
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Medium Content does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Medium Content has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Successful track record of launching new products
– Medium Content has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Medium Content has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Ability to recruit top talent
– Medium Content is one of the leading recruiters in the industry. Managers in the Medium in 2015: A New Form of Networked Publishing are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Analytics focus
– Medium Content is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Robert E. Siegel, Robert A. Burgelman, Tim Hsia can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Low bargaining power of suppliers
– Suppliers of Medium Content in the sector have low bargaining power. Medium in 2015: A New Form of Networked Publishing has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Medium Content to manage not only supply disruptions but also source products at highly competitive prices.
High brand equity
– Medium Content has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Medium Content to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– Medium Content is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Medium Content digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Medium Content has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Weaknesses Medium in 2015: A New Form of Networked Publishing | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Medium in 2015: A New Form of Networked Publishing are -
Lack of clear differentiation of Medium Content products
– To increase the profitability and margins on the products, Medium Content needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Medium Content has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Medium in 2015: A New Form of Networked Publishing should strive to include more intangible value offerings along with its core products and services.
Low market penetration in new markets
– Outside its home market of Medium Content, firm in the HBR case study Medium in 2015: A New Form of Networked Publishing needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Medium Content is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Medium in 2015: A New Form of Networked Publishing can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Slow decision making process
– As mentioned earlier in the report, Medium Content has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Medium Content even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Medium in 2015: A New Form of Networked Publishing HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Medium Content has relatively successful track record of launching new products.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert E. Siegel, Robert A. Burgelman, Tim Hsia suggests that, Medium Content is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Slow to strategic competitive environment developments
– As Medium in 2015: A New Form of Networked Publishing HBR case study mentions - Medium Content takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
No frontier risks strategy
– After analyzing the HBR case study Medium in 2015: A New Form of Networked Publishing, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Medium Content supply chain. Even after few cautionary changes mentioned in the HBR case study - Medium in 2015: A New Form of Networked Publishing, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Medium Content vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Medium in 2015: A New Form of Networked Publishing, in the dynamic environment Medium Content has struggled to respond to the nimble upstart competition. Medium Content has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Opportunities Medium in 2015: A New Form of Networked Publishing | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Medium in 2015: A New Form of Networked Publishing are -
Building a culture of innovation
– managers at Medium Content can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
Manufacturing automation
– Medium Content can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Learning at scale
– Online learning technologies has now opened space for Medium Content to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Medium Content to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Medium Content in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Leveraging digital technologies
– Medium Content can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Medium Content can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Medium Content can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Medium Content can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Low interest rates
– Even though inflation is raising its head in most developed economies, Medium Content can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Creating value in data economy
– The success of analytics program of Medium Content has opened avenues for new revenue streams for the organization in the industry. This can help Medium Content to build a more holistic ecosystem as suggested in the Medium in 2015: A New Form of Networked Publishing case study. Medium Content can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Medium Content can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Medium Content in the consumer business. Now Medium Content can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Medium Content to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Medium Content to hire the very best people irrespective of their geographical location.
Threats Medium in 2015: A New Form of Networked Publishing External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Medium in 2015: A New Form of Networked Publishing are -
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Medium Content.
Regulatory challenges
– Medium Content needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Technology & Operations industry regulations.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Medium Content with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Medium in 2015: A New Form of Networked Publishing, Medium Content may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Environmental challenges
– Medium Content needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Medium Content can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
High dependence on third party suppliers
– Medium Content high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Medium Content will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Medium Content in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Medium Content can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Medium Content is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Medium Content
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Medium Content.
Weighted SWOT Analysis of Medium in 2015: A New Form of Networked Publishing Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Medium in 2015: A New Form of Networked Publishing needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Medium in 2015: A New Form of Networked Publishing is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Medium in 2015: A New Form of Networked Publishing is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Medium in 2015: A New Form of Networked Publishing is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Medium Content needs to make to build a sustainable competitive advantage.
